BB&T Corp. on Wednesday said profits rose 22 percent in the third quarter as the Winston-Salem-based bank’s revenues grew from recent acquisitions.
Charlotte’s third-largest bank by deposits reported a record $599 million in net income available to common shareholders, compared with $492 million in the same period last year. Excluding merger costs and other items, net income was $626 million.
BB&T has acquired a string of other banks over the past two years, a move that has allowed the company to enter new U.S. markets. In April, BB&T completed its acquisition of Pennsylvania-based National Penn Bancshares. That same month, BB&T completed its acquisition of wholesale insurance broker Swett & Crawford, adding to other recent insurance deals by BB&T.
Revenues increased 13 percent to $2.8 billion, compared with $2.5 billion a year ago. Noninterest expenses increased 7 percent, to $1.7 billion, in part from higher personnel expenses and other items tied to recent acquisitions.
“We achieved strong revenue growth and excellent expense control by capitalizing on our recent acquisitions,” CEO Kelly King said in a statement.
BB&T took steps in the recent quarter to reduce ongoing costs, King said, including an $83 million mortgage settlement announced in September with the U.S. Department of Justice.
Like other commercial banks, BB&T is challenged to increase its profitability in a period of low interest rates.
BB&T’s net interest margin, a key measure of banks’ profitability, fell to 3.39 percent in the third quarter from 3.41 percent in the second quarter. But the margin was up from 3.35 percent in the third quarter of last year.